2014

Yew Bio-Pharm Group Reports 2013 Fourth Quarter And Full Year Financial Results

HARBIN, China, March 31, 2014 /PRNewswire/ -- Yew Bio-Pharm Group, Inc. ("Yew Bio" or the "Company") (OTCBB: YEWB), a major grower and seller of yew trees, yew raw materials used in the manufacture of traditional Chinese medicine and products made from yew timber in China, today reported financial results for the three- and twelve-months ended December 31, 2013.

2013 Fourth Quarter Results           


Three Months Ended December 31,

Twelve Months Ended December 31,


2013

2012

2013

2012

Revenues:





TCM Raw Materials

$998,934

$884,796

$4,170,748

$3,745,348

Yew Trees

909,311

966,464

3,011,728

2,819,968

Handicrafts

81,770

43,474

257,172

162,208

Total Revenues

$1,990,015

$1,894,734

$7,439,648

$6,727,524

Total revenue for the fourth quarter of 2013 increased 5.0% to $2.0 million from $1.9 million a year ago.  Sales of TCM raw materials amounted to 50.2% of total revenues, sales of yew trees amounted to 45.7% of total revenues, and sales of handicrafts made up the remaining 4.1%. 

For the 2013 fourth quarter gross profit was $1.3 million, or 65.6 % of total revenue, compared with $1.5 million, or 76.7% of total revenues for the comparable 2012 quarter. Gross profit was primarily impacted by the remanufacturing of yew trees into TCM from whole plants at the Qingshan plant.

Operating expenses were $262,982 in the quarter, as compared to $2.6 million in the year-ago quarter, which included stock-based compensation of $2.5 million.

Net income in the fourth quarter of 2013 was $1.0 million, or $0.02 per diluted share, compared with a net loss of $1.2 million in the year-ago quarter, or $0.02 per share.

2013 Results

Total revenues for the 2013 fiscal year were $7.4 million, a 10.6% increase from $6.7 million a year earlier.  Sales of TCM raw materials amounted to 56.1% of total revenues, sales of yew trees amounted to 40.5% of total revenues, and sales of handicrafts made up the remaining 3.4%.

Gross profit was $5.0 million, or 67.6% of total revenues, for the full year, compared with $5.4 million, or 81.0% of total revenues in 2012. 

Operating expenses were $1.1 million for the year ended December 31, 2013, compared with $3.2 million a year earlier.

Net income for 2013 increased to $3.9 million, or 0.08 per diluted share, from $2.2 million, or $0.05 per diluted share for 2012.

"During fiscal 2013, we were able to achieve growth across all revenue categories, selling more than 24,000 kg of TCM raw materials and nearly 500,000 yew trees," said Mr. Zhiguo Wang, Chairman and Chief Executive Officer of Yew Bio-Pharm Group. "To increase our growth trajectory, we are expanding our sales and marketing efforts to new customers, as well as continuing to evaluate land leasing opportunities.

"Through our patented Asexual Reproduction Method, we are able to significantly shorten the maturity cycle of naturally-grown yew trees, in as little as three years compared to more than 50 years for naturally grown yew trees. This allows for earlier commercialization while not further endangering the China's natural supply of yew trees, which were over-forested since the discovery of taxol," Mr. Wang added.  

ABOUT YEW BIO-PHARM GROUP, INC

Yew Bio-Pharm Group, Inc., through its operating entity, Harbin Yew Science and Technology Development Co., Ltd. (HDS), is a major grower and seller of yew trees, yew raw materials used in the manufacture of traditional Chinese medicine (TCM) and products made from yew timber in China. Raw material from the species of yew tree that the Company grows contains taxol, and TCM containing yew raw materials has been approved as a traditional Chinese medicine in China for secondary treatment of certain cancers.  The Company uses a patented, accelerated growth technology to speed the growth and maturity and commercialization of yew trees and believes that it is one of the few companies possessing a permit to sell them. To learn more, please visit www.yewchina.com

SAFE HARBOR

This press release forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act.  These forward-looking statements involve a number of risks and uncertainties that could cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by these forward-looking statements.  A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: our ability to collect from our largest customers; our dependence on a small number of customers for raw materials, including a related party; our ability to continue to purchase raw materials at relatively stable prices; our dependence on a small number of customers for our yew trees for reforestation; our ability to market successfully raw materials used in the manufacture of traditional Chinese medicines; and our ability to receive continued preferential tax treatment for the sale of yew trees and potted yew trees.  From time to time, these risks, uncertainties and other factors are discussed in the Company's filings with the U.S. Securities and Exchange Commission, including its most recent annual report on Form 10-K.  Yew Bio does not undertake any obligation to update any forward-looking statements as a result of new information, future events or otherwise, except as required under applicable law.

Company Contacts:

Henry Pang

Yew Bio-Pharm Group, Inc.

Tel: (702) 487-4683

hpang@yewbiopharm.com

Investor Relations Contacts:

Judy Lin Sfetcu / Matt Sheldon

PondelWilkinson Inc.

Tel: 310-279-5980

investor@pondel.com

(financial tables follow)

YEW BIO-PHARM GROUP, INC. AND SUBSIDIARIES 

CONSOLIDATED BALANCE SHEETS









 December 31, 


2013


2012







ASSETS






CURRENT ASSETS:






    Cash

$

1,159,611


$

386,821

    Accounts receivable


418,875



722,598

    Accounts receivable - related party


377,821



284,986

    Inventories


1,089,087



991,234

    Prepaid expenses and other assets


2,697



150

    Prepaid expenses - related party


34,031



60,245







        Total Current Assets


3,082,122



2,446,034







LONG-TERM ASSETS:






    Inventories, net of current portion


10,245,146



9,382,164

    Property and equipment, net


1,033,078



885,969

    Land use rights and yew forest assets, net


20,953,562



15,328,318







        Total Long-term Assets


32,231,786



25,596,451







        Total Assets

$

35,313,908


$

28,042,485







LIABILITIES AND SHAREHOLDERS' EQUITY






CURRENT LIABILITIES:






    Accounts payable

$

-


$

990

    Accrued expenses and other payables


136,713



199,098

    Taxes payable 


10,232



5,722

    Due to related parties


4,850,637



47,876







        Total Current Liabilities


4,997,582



253,686







        Total Liabilities


4,997,582



253,686







COMMITMENTS AND CONTINGENCIES












SHAREHOLDERS' EQUITY:






    Common Stock ($0.001 par value;  50,000,000 shares authorized;  50,000,000  and 






     50,000,000 issued and outstanding at December 31, 2013 and 2012, respectively)


50,000



50,000

    Additional paid-in capital


8,058,165



10,396,377

    Retained earnings


16,664,138



13,182,032

    Statutory reserves


2,597,118



2,179,494

    Accumulated other comprehensive income - foreign currency translation adjustment


2,946,905



1,980,896







        Total Shareholders' Equity


30,316,326



27,788,799







        Total Liabilities and Shareholders' Equity

$

35,313,908


$

28,042,485







 

YEW BIO-PHARM GROUP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME














Three-Months Ended


Twelve-Months Ended


December 31, 


December 31, 


2013


2012


2013


2012

REVENUES:












    Revenues

$

1,848,698


$

1,482,606


$

5,889,190


$

5,713,237

    Revenues - related party


141,317



412,128



1,550,458



1,014,287













        Total Revenues


1,990,015



1,894,734



7,439,648



6,727,524













COST OF REVENUES:












    Cost of revenues


648,654



368,201



1,968,682



1,095,158

    Cost of revenues - related party


36,327



74,147



438,718



183,899













        Total Cost of Revenues


684,981



442,348



2,407,400



1,279,057













GROSS PROFIT


1,305,034



1,452,386



5,032,248



5,448,467













OPERATING EXPENSES:












     Selling


4,745



6,723



23,794



24,603

     Compensation


-



2,527,800



-



2,527,800

     Other general and administrative


258,237



71,776



1,110,717



691,562













        Total Operating Expenses


262,982



2,606,299



1,134,511



3,243,965













INCOME FROM OPERATIONS


1,042,052



(1,153,913)



3,897,737



2,204,502













OTHER INCOME (EXPENSES):












     Interest income


402



132



647



2,194

     Other income (expenses)


44



178



1,346



(429)













        Total Other Income (Expenses)


446



310



1,993



1,765













NET INCOME

$

1,042,498


$

(1,153,603)


$

3,899,730


$

2,206,267













COMPREHENSIVE INCOME:












      NET INCOME

$

1,042,498


$

(1,153,603)


$

3,899,730


$

2,206,267

      OTHER COMPREHENSIVE INCOME:












           Unrealized foreign currency translation gain


188,142



72,720



966,009



181,028













      COMPREHENSIVE INCOME

$

1,230,640


$

(1,080,883)


$

4,865,739


$

2,387,295













NET INCOME PER COMMON SHARE:












       Basic

$

0.02


$

(0.02)


$

0.08


$

0.05

       Diluted 

$

0.02


$

(0.02)


$

0.08


$

0.05













WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:










       Basic

50,000,000


47,819,672


50,000,000


47,819,672

       Diluted 

50,000,000


47,819,672


50,000,000


47,819,672

 

YEW BIO-PHARM GROUP, INC. AND SUBSIDIARIES 

CONSOLIDATED STATEMENTS OF CASH FLOWS























For the year ended 





December 31





2013


2012

CASH FLOWS FROM OPERATING ACTIVITIES:







Net  income

$

3,899,730


$

2,206,267


Adjustments to reconcile net income to net cash







         provided by operating activities:








         Depreciation



179,857



217,090


         Amortization of land use rights and yew forest assets



381,659



346,741


         Loss on disposal of fixed assets



349



1,013


         Stock-based compensation



-



2,246,907


Changes in operating assets and liabilities:







         Accounts receivable



323,160



(722,170)


         Accounts receivable - related party



(82,282)



(284,817)


         Prepaid and other current assets



(2,515)



284


         Prepaid expenses - related party



27,823



(60,209)


         Inventories



(222,738)



(2,090,046)


         Accounts payable



(1,008)



(1,369,280)


         Accrued expenses and other payables



(65,466)



78,597


         Due to related parties



-



(157,025)


         Taxes payable



4,255



5,211










NET CASH PROVIDED BY OPERATING ACTIVITIES


4,442,824



418,563










CASH FLOWS FROM INVESTING ACTIVITIES:







         Purchase of property and equipment



(299,613)



(313,908)


         Purchase of land use rights and yew forest assets



(3,393,082)



(392,136)










NET CASH USED IN INVESTING ACTIVITIES


(3,692,695)



(706,044)










CASH FLOWS FROM FINANCING ACTIVITIES:







         Repayments for related parties advances



(210)



(63,293)










NET CASH USED IN FINANCING ACTIVITIES


(210)



(63,293)










EFFECT OF EXCHANGE RATE ON CASH


22,871



5,224










NET DECREASE IN CASH


772,791



(345,550)










CASH  - Beginning of year


386,821



732,371










CASH - End of year

$

1,159,611


$

386,821










 

SOURCE Yew Bio-Pharm Group, Inc.



RELATED LINKS
http://www.yewchina.com

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